SUPERMARKETS are walking away with the "lion's share" of profits - leaving farmers to operate at a loss if it wasn't for the European Single Farm Payment.

The hard-hitting claims were delivered by Joe McDonald of the Ulster Farmers' Union on Wednesday at a seminar on the challenges and opportunities for the Agri-Food sector.

Mr McDonald also told delegates at the Royal Ulster Agricultural Society-hosted event at the King's Hall, Belfast, that growing pricing disparities between Northern Ireland and Great Britain were devaluing the entire agricultural industry in the Province.

Prince Edward, the Earl of Wessex and patron of the RUAS, also addressed the conference on his second engagement of the day.

The seminar hosted speakers from a wide spectrum of the agricultural industry including Norman Fulton, DARD Economics Branch; Trevor Lockhart, chief executive, Fane Valley; Aidan Lonergan, RSPB NI director; and Cliff Kells, commerical manager, Tesco Northern Ireland.

Mr McDonald, in his address, stressed there were some good relationships between farmers and supermarkets.

He said: "We do acknowledge that we have some excellent examples in Northern Ireland where suppliers and supermarkets are working closely together in what we hope will be long term and mutually beneficial relationships.

"But supermarkets are competing aggressively for market share and are focused on making a dividend for shareholders.

"We have a dysfunctional supply chain. Supermarkets have walked off with the lions share of the profits. Total income from farming last year was £236 million, but our total Single Farm Payment receipts were £254 million – take away the European support, and farmers are in effect generating no profit from their efforts.

"There is a relentless downward pressure on farm gate prices. Food price inflation has only been half that of general inflation," he added.

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June 25th 2009
June 25th 2009

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